How to profit from real estate by rehabbing and retailing

How to profit from real estate by rehabbing and retailing

Buying houses low and selling them high is called retailing. This is the most easily understood method of investing in real estate. It's the art of buying at a low price, often doing some repairs, and then selling at retail price and usually cashing out. A lot of money is made through this method. Some people do it part-time, turning 2 or 3 houses a year, and make more money at it than they make on their regular jobs. Others do it full-time and turn 40 to 80 houses a year with an average profit from 20,000 to 35,000 per deal.

Rehabbing and retailing houses is very profitable, but it is's also the hardest way to make money in real estate and is layered with costly entanglements. A lot of satisfaction comes from rehabbing. Following is a list of tips for rehabbing and retailing:

1. Buy in areas where qualified buyers want to live.

2. Never close your purchase without confirming your assumptions, that is, after repaired value and repair estimates. Do your due diligence and get the purchase appraised as completed; buy title insurance; have a termite inspection; get repair estimates from qualified contractors; and get estimates to fix any other traps you can avoid.

3. Always borrow more than you need to buy and repair. The job will always cost more, take longer, and yield less profit than you expect. You better have a cash reserve.

4. Keep a tight leash on contractors. They'll play you like a yo-yo, which can - and probably will - be one of your biggest learning experiences in The School of Hard Knocks. But hey, don't worry; I graduated from that same school top of my class, and I survived.

5. Don't tie up your cash. Tying it up is a good way to become a motivated seller. The greater your need to sell, the longer it will take.

6. Do a nice renovation job. It'll pay handsome dividends in saved holding costs and in satisfied customers who'll send you more buyers.

7. Find a good loan processor or mortgage broker to get your buyers financed. It's the difference between success and failure. This person has your paycheck in his or her control,, so make sure the person you find knows his or her business and follows up.

8. Master the art of selling houses as fast as humanly possible. Slow selling is the biggest weakness for most yet one of the easiest to fix. If you sell houses the way most untrained investors do, it'll be a while before you get paid.

9. Never do your own repairs. If you do, you're working as a laborer, not an investor. You make money by locating and buying good deals, not swinging a paint brush. If you adhere to tip 3, it won't be a problem; you'll have the money. Some people tell me fixing houses is their therapy. I say if you lay hands on a house, you need therapy.

10. Get trained at this craft of quick turning real estate before you have to pay an ugly price for your education. Education is a lot cheaper than ignorance.

 

 

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How to profit in real estate investing with fixer uppers

How To Profit In Real Estate Investing With Fixer-Uppers

To be sure, most homebuyers need a property that is a home and not something to invest their hard-earned money in. Furthermore, when you are looking for fixer-uppers with real estate investing in mind you will also have to have contractors available who can make a home inhabitable with just a little work. Once you are sure that you want a contractor to repair and upgrade your home, you can then prospect for homes that are available at bargain prices.

real estate investing, Distress Homes, fixer uppers, foreclosures, short sales, real estate expert

There are many people who get into real estate investing and who, in the process, just follow a simple formula which is using the well tried and certainly most tested way of doing business in real estate and that is to buy homes being put up for sale by owners who are in distress. In such instances, they are able to snap up distress properties at rock bottom prices and then they simply fix up the properties with a view to selling them further at a higher price and in the process make a tidy sum of money. As a matter of fact, it has been found that those who have used such simple strategies over the long term have succeeded so much that they have made enough money to turn into millionaires.

Different Reasons Why Distress Homes Are Put Up For Sale

The problem of course that one has to contend with at the very outset is that of learning how to find fixer-uppers. In this regard it should be mentioned that when a homeowner becomes distressed it may cause them to cease to properly maintain their properties and often, they may even end up falling behind in making the payments on their properties. What's more, both buyers and sellers are known to have a number of different reasons why they get into real estate investing in fixer-uppers though common reasons include losing a job or going through a divorce and even illnesses and alcohol abuse can cause a seller to become distressed.

Whatever the reason why a homeowner becomes distressed, there is no doubt that the real loser in the equation is the property which will suffer because it won't be properly maintained and payments on it too will start to be skipped and thus it becomes an ideal candidate for being sold as part of a fixer-upper strategy. And, among the most lucrative real estate investing opportunities that you will come across when it concerns fixer uppers are homes that are completely rundown, owned by a seller who is in the process of divorcing their spouse and those who can't keep up with their mortgage payments.

Still, homes that are very ugly and which need fixing are really quite difficult to sell off because buyers for such homes are rather limited and not easy to convince to buy such type of homes. Obviously, homeowners prefer to put their real estate investing money in homes that don't need much repair work because having to repair a home or upgrade it is not something a prospective homeowner will want when purchasing a home.

To be sure, most homebuyers need a property that is a home and not something to invest their hard-earned money in. Furthermore, when you are looking for fixer-uppers with real estate investing in mind you will also have to have contractors available who can make a home inhabitable with just a little work. Once you are sure that you want a contractor to repair and upgrade your home, you can then prospect for homes that are available at bargain prices.

Typically, you should scout the advertisements that have terms such as as-is or fixer-upper or even handyman's special or other similar terms that show you that the home requires some repair. Even a local real estate agent can point you in the right direction. If you stick in this line long enough, people will then come to understand that you are in the fixer-upper line of real estate investing and will then contact you with suitable and tempting fixer-upper deals.

Having located a suitable property, you then need to be sure about what the problem with the home is and then think of ways to solve such problems. Often, the problem may have a lot to do with financial constrains rather than requiring to physically repair the home and if such is the case, you can then get an even lower sales price for the property in question. However, be aware that fixer-uppers in real estate investing is a line in which you must always tread with great care and caution because even a small mistake can lead to disastrous consequences.

The bottom line is that you must first of all put together a good team and to also do home buying in a very careful and conservative manner. In addition, you should also be prepared to pay whatever it takes to repair the home and once you understand and act properly on these parameters you will find that fixer upper in real estate investing can fetch you plenty of money.

 

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How to profit from drop shipping

How to Profit From Drop Shipping

Smart Internet marketing involves smarter business strategies - and one such strategy is drop shipping. With drop shipping, you can save your time and put it to better use making you more money.

Drop shipping is an entrepreneur's dream, offering a host of benefits. To put it simply, drop shipping allows you to sell goods online at a price of your choice without keeping any inventory. When the customer purchases the goods and makes payment for them, you will place an order for the product though your supplier, a drop shipper. Your drop shipper then charges you a wholesale price for the product and ships the product directly to the customer. You get to keep the difference between wholesale and retail price.

Drop shipping offers many unique advantages to you:

1. You don't need to keep stock or inventory.

2. You don't need to bother with packing and shipping.

3. You can make money easily by just taking orders.

4. Your profit margin could increase.

Even though drop shipping can have many advantages, however, there are some things you need to consider:

1. Any product or service you intend to sell online must be in demand.

2. The product you choose must sell in high volumes: the fact that you could sell the profit cheaply and make a good margin doesn't mean anyone is buying. Research the market for any product line you're considering. Try to determine demand for the product, how much competition there is, and what they're charging.

3. Signing up with a well-known supplier offers you many benefits. For instance, you will probably find it easier to return unsatisfactory products. Some drop suppliers will even pay the return costs in these cases. As a promotion, some suppliers will even offer you products for free if you meet their targets.

4. Target one or two products at a time -- don't be in a rush to sell lots of different ones. Maintaining a large drop shipping business is often difficult and can become unmanageable.

How do you set your drop shipping business? To get started, find a directory of legitimate drop shippers with excellent reputations. Make a list of drop shippers who are established in the business and have a proven track record. Next, take the top five from the list and look through their website for products and services. In most cases you will find that their catalogue is massive, with all sorts of things available. Above all else, you need to be sure that you can sell what you choose.

Once you've done your homework, make contact with the drop shipper, either by phone or by mail. Don't start prematurely telling them all about your project, though -- you should start by asking for additional information on the terms and conditions. You will have read every clause and sub-clause thoroughly, taking care to understand the business model you're signing up to. Terms and conditions and service policies often vary with different drop shippers -- look out for any hidden clauses that could cause you trouble in the future.

The next step is to select the best offers from the drop shippers and start negotiating for better commission rates. If you have a thriving web business with a lot of traffic, it's possible to make a case for a better commission rate. Once the terms and conditions are acceptable to both of you, you can add the products to your online store.

When you work with a drop shipper, you become a "merchant" or "trader". This usually means that you will need to register with the relevant authorities. To become a merchant you may have to register to file tax returns and get a valid license to sell your products. Such regulations vary from region to region, so you should check it out with your local authorities.

The biggest headache associated with drop shipping is product returns. Don't expect it to be anything like smooth sailing. You'll run into back orders, product returns or even refund demands, if products are defective. As the shipping isn't under your control, it's difficult to explain your customers what's going on when products are unavailable or delivered late. Your own terms and conditions, user policy and other such notices must be precise and explain everything in detail to the customers. Always aim to avoid legal hassles, but do be prepared to contest customers' claims.

 

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How to profit from real estate by wholesaling

How to profit from real estate by wholesaling

Wholesaling in real estate is an entire business in itself and generates super-fast profits, usually without ever acquiring the title on the property. It's not uncommon to pick up a check at closing, with the seller and buyer present at the same time. Many times I have earned thousands of pounds within two or three days of finding a deal. Successful people in the wholesale business are accomplished at locating good deals and marketing them - primarily to people who are in the rehabbing and retailing business. The first purchaser is willing to take a smaller, fast profit and leave the larger profit to an investor with the time and money to buy, repair, and sit on the house until it's sold.

Some people are making a good income by buying and then reselling immediately only once or twice a month. These deals require no money, no credit, and no bosses. Believe me, if you locate a deal, someone is waiting to buy it from you.

Finding bargains for bargain hunters is the easiest and quickest way I know to pick up a check for at least 5000. The whole process shouldn't take more than 15 to 20 days from the beginning to the end. Following are some tips for wholesaling:

1. Don't pay too much. Remember, you're selling to bargain hunters. Leave them plenty of room to make a profit or you won't find a buyer. That means they should net at least 20 percent of the sales price after all expenses.

2. Your only exit is to sell for all cash quickly. Make sure your buyers can get the cash and aren't relying on bank financing. Don't allow buyers to learn banks won't finance junkers at your expense. If a buyer can't close in 15 days or less, find another buyer.

3. Use an assignment of contract and let your closing agent collect your fee.

There's really not that much to learn about wholesaling. It's an easy real estate business. Many people are doing one to ten deals a month and netting a decent earning. Some make more on one wholesale deal than most people make in a year on their job.

 

 

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How to use the internet for profit

How to use the Internet for Profit

The special features of the Internet can be used to take an idea, refine it and make the concept available on the Internet for profits.

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Internet Profit Ideas

Until recently information was generally only available in spoken or written form. Hence to find out something of interest or need you had to search for the right source such as a person having the answer or a book or article in a bookstore or library.

The advent of computers and the Internet means every document is automatically in electronic formats and potentially available to anyone connected to the net via a computer. While the potential available resources are counted in tens of millions and more than a lifetime to study the reality for many is that the understanding of the Internet appears to be a daunting problem at first, and often longer, and the workings the preserve of specialists and experts.

Here is how you start for Internet Profits.
Despite the constraints of volume and expertise there are literally millions of people regularly using the Internet and visiting sites of interest. A good number are searching for, and would be interested in, a new idea or concept tha

 

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